It’s cold out there

The strong Swiss franc, tax deals and market turmoil are squeezing the industry. That’s prompted Dutch lender Rabobank to weigh bids for its 46 pct stake in Sarasin. Any buyer risks culture clash and customer loss. But the benefits of size may outweigh those of independence.

Context News

Sarasin said on Oct. 13 that Rabobank was looking at all options for the Dutch lender’s 46 percent stake in the Swiss private bank.
Swiss newspapers reported that Julius Baer and cooperative bank Raiffeisen were considering bids for the Dutch cooperative bank. Neither Swiss bank commented directly on the reports, but a Julius Baer spokesman said Sarasin was an interesting prospect.
Sarasin’s management said in an internal memo earlier in November that it hoped Rabobank, which holds 68 percent of the voting rights in the bank, would make a decision that allows Sarasin to remain independent.
Twelve top managers at Sarasin, including its chief executive Joachim Straehle, wrote a letter to Rabobank’s board to fend off a takeover by Julius Baer, Tagesanzeiger reported on Nov. 19.
Sarasin managers have been reported in the Swiss press to prefer a sale to retail cooperative bank Raiffeisen, as they fear significant job cuts if Julius Baer takes control.
Straehle told the Financial Times on May 20 that management had held informal talks with Rabobank about selling its stake to them.